Berkshire Hathaway Inc. (BRK.A; BRK.B) has announced its financial results for the fourth quarter and full year of 2024. The company's operating earnings saw a significant increase, while overall net earnings declined due to lower investment gains compared to the previous year.
Key Financial Highlights
Fourth Quarter 2024 vs. Fourth Quarter 2023:
Net earnings attributable to shareholders: $19.7 billion (down from $37.6 billion in Q4 2023)
Investment gains/losses: $5.2 billion (down from $29.1 billion in Q4 2023)
Operating earnings: $14.5 billion (up from $8.5 billion in Q4 2023, an increase of 70.6%)
Net earnings per Class A share: $13,695 (down from $26,043 in Q4 2023)
Full-Year 2024 vs. Full-Year 2023:
Net earnings attributable to shareholders: $88.9 billion (down from $96.2 billion in 2023)
Investment gains/losses: $41.6 billion (down from $58.9 billion in 2023)
Operating earnings: $47.4 billion (up from $37.4 billion in 2023, an increase of 26.8%)
Net earnings per Class A share: $41,270 (down from $44,270 in 2023)
Operating Performance and Segment Breakdown
Berkshire Hathaway's operating businesses performed well, with most segments showing year-over-year growth:
Insurance Underwriting: Generated $3.4 billion in Q4 2024, a sharp increase from $848 million in Q4 2023.
Insurance Investment Income: Rose to $4.1 billion in Q4 2024, compared to $2.8 billion in Q4 2023.
BNSF (Railroad Operations): Reported $1.3 billion in Q4 2024, slightly down from $1.4 billion in Q4 2023.
Berkshire Hathaway Energy: Earned $729 million in Q4 2024, compared to $632 million in Q4 2023.
Other Controlled Businesses: Contributed $3.3 billion, remaining stable compared to Q4 2023.
Non-Controlled Businesses: Reported $695 million, up from $421 million in Q4 2023.
Investment Gains and Market Volatility
Berkshire Hathaway noted that investment gains/losses are often misleading as they include unrealized gains from equity holdings. In 2024, the company reported after-tax investment gains of $2.1 billion in Q4 and $38.1 billion for the full year, compared to $29.5 billion and $53 billion in 2023, respectively. The decline reflects lower unrealized gains in Berkshire's stock portfolio.
Realized investment losses amounted to $330 million in Q4 2024, compared to gains of $3.1 billion in Q4 2023. For the full year, Berkshire had $3.6 billion in realized gains, compared to $79.6 billion in 2023.
Stock Repurchases and Insurance Float Growth
Berkshire repurchased approximately $2.9 billion worth of its stock in 2024, signaling confidence in its long-term value. As of December 31, 2024, the company had 1,438,223 Class A equivalent shares outstanding.
Berkshire’s insurance float—representing funds held for future claims payments—grew to $171 billion, up by $2 billion from 2023. This provides a low-cost source of capital for the company's investments.